Terraform Labs Liquidator Sues Jane Street for Insider Trading and Seeks Compensation

Odaily News: Todd Snyder, the administrator of the Terraform Labs liquidation plan, announced that a lawsuit has been filed in Manhattan federal court against trading giant Jane Street and its co-founder Robert Granieri, among others.

Todd Snyder accuses Jane Street of engaging in insider trading by using material non-public information obtained from Terraform Labs insiders, thereby illegally profiting during the depegging of TerraUSD and the collapse of the Terra ecosystem. The complaint reveals that Jane Street established a secret channel through former intern Bryce Pratt to obtain confidential information from Terraform Labs employees. Within 10 minutes after Terraform Labs withdrew 150 million TerraUSD from the Curve pool on May 7, 2022, Jane Street preemptively withdrew 85 million TerraUSD for front-running trades. Previously, Todd Snyder had filed a $4 billion lawsuit against Jump Trading on similar grounds. Currently, Jane Street denies the related allegations. (WSJ)